accountant pymble

Property accountant reminds investors what to know about property investment in Australia

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Some people believe that it is better to buy a house than an apartment because a major part of a property’s value is in the land. Generally, houses are more valuable than apartments but keep in mind that houses are not always the best investment or that apartments cannot deliver significant profits. As a property accountant in the Pymble area, Chan & Naylor wants to remind investors that the market isn’t the same across the country.

The property market in, for example, Sydney has several suburbs that operate with different fundamentals and varying supply and demand drivers that determine market performance. Each suburb has about three districts with different factors related to location, affecting property value. You should avoid generalising property markets.

People also believe that house values double in value every decade or more. However, that is not always the case. It’s true that the Sydney and Melbourne median price doubled in the last decade but other capital cities did not. It was only Sydney, Melbourne and Canberra which outperformed inflation in the last 10 years. Not only that – some Sydney and Melbourne properties have exceeded expectations while others underperformed. Not all properties are equal so make sure you buy only investment grade properties to outperform the averages.

It is also not true that the only time you should buy a property is when the market is at the bottom of the property cycle. While it makes sense that you do, there are many other factors to take into account when buying. You may get a bargain if you buy at the bottom of the cycle but if the market stays low for a couple of years, it may not be a profitable asset.

Remember that you start to profit when you buy a property and not because you bought it for a cheap price. The important thing is that the property has a strong and continuous demand. Talk to a property accountant in Pymble who can give professional advice and guide you in your property investment journey.

If you would like to know more about property investment, you can click here to know more about Chan & Naylor services. You can leave your details here and we can schedule you for a free consultation. We’ll contact you to explain more.

Whether you are a beginner, seasoned investor or business owner, our property and business tax accountants can give you guidance to maximise the financial areas of your life. We can also give you an integrated and tailored solution of your superannuation, taxation, property investment, asset protection, estate planning and more.

Click here to schedule a chat or call any of our local offices near you.

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Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.

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